While both VLC_help and j-b are probably correct I have yet to appreciate why people are trying to do this??? I mean it takes a very large monitor (52" to 65") to begin to appreciate the difference between 720p and 1080p and the 2.4 to 3.5k to drop for what, problems and unresolved standards??? Other than this is the time and space to deal with the file. So is this an exercise in trying to see the limits of your machine?
Trying being happy with what you have rather than spend lots of time and frustration worrying about or trying to resolve what you have not. Next year there will be a new model for half the price that will do everything you want.
The first of the new players/recorders are out for both the blueray and HD mpeg formats. Do they actually work as claimed? Or do they have problems. The TVs and or projectors that will do 720p or 1080p have been out for some time now, do they work or are there restrictions for there use? Or perhaps you still think it's a matter of doing the research then finding and buying the right one, then think again!
While there are some reasonable solutions for 720p, I'm not sure there is for 1080p or will be any time soon. I guess only time will tell.
If you really want to do something worth while in this area start making comparisons of the interlaced standards versus the progressive standards and look at the differences between say 480p and the DVD. Then know that the HDTV standards and restrictions are not worth the buy in at this juncture. Try complaining to the powers that be with regard to these standards and restrictions and YOU may make a deference with regard to the future of 720p and 1080p. Somewhere over the rainbow I'm sure there is an answer just for you!
It took me a long time and money to come to these conclusions and at this juncture I can make some eye popping 480p files and am still experimenting with 720p. So what I'm saying here is not without some experience.